You do realize that one reason for the current state of affairs is the complete lack of ability to test ANY new theory? The LHC was really only designed to see what we expected to see. If we don't see some things that will be great but it will mean that the Standard Model is pretty much wrong. But we won't be able to test anything else.
It is naive to believe that everything in the world can be optimized my some market solution. If some group isn't producing results it is not always the case that reducing their funding will produce better results (e.g. education and basic science). We have trained many great theoretical physicists in the past 30 years but have invested very little in experiments that are likely to produce that could falsify any modern theory.